These 5 Companies Recently Announced Layoffs, Hiring Freeze Amid Recession Fears

4. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 144

Uber Technologies, Inc. (NYSE:UBER) offers technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific, operating through three segments – Mobility, Delivery, and Freight. 

Uber Technologies, Inc. (NYSE:UBER) CEO Dara Khosrowshahi said in the beginning of May that the company is shifting its spending patterns in order to streamline profitability efforts in a dynamic market. In light of the broad selloff in the tech sector, the Uber Technologies, Inc. (NYSE:UBER) CEO reiterated that spending will be controlled on both marketing and incentives, and hiring will be a ‘privilege’, noting that board-level hiring will be even more scrutinized. 

On May 31, Jefferies analyst Brent Thill lowered the price target on Uber Technologies, Inc. (NYSE:UBER) to $50 from $65 and kept a Buy rating on the shares. The analyst has cut his estimates across 11 internet companies, slashing his 2023 revenue estimates by 0%-6% and his price targets for the group by about 11%, considering the worsening economic backdrop.

In Q1 2022, 144 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), down from 153 funds in the prior quarter. Brad Gerstner’s Altimeter Capital Management held a significant position in the company, consisting of 17 million shares worth about $607 million. 

Here is what ClearBridge Large Cap Growth Strategy has to say about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2021 investor letter:

“We have also been looking for multi-year secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber will also be a key player in the transition from internal combustion engines to EVs.”